Seattle-based biotechnology company Dendreon (DNDN) recently raised more than $200 million through the issuance of 10.7 million shares of its common stock in a public offering. In addition, it granted offering manager Deutsche Bank Securities an over-allotment of 1.3 million shares to support the manufacture and marketing of Provenge.

Provenge, a therapeutic vaccine candidate being developed by Dendreon for the treatment of prostate cancer is likely to receive FDA approval in the first half of 2010. Unlike traditional vaccines that prevent diseases, Provenge treats it by stimulating the body’s own immune system to attack cancer cells.

We remind investors that the company met with disappointment in 2007 when the FDA asked for further data before approving it. The disappointing news had caused the company to retrench 15% of its workforce and sent its shares on a downward journey.

However, in April 2009, Dendreon reported positive results from its IMPACT (IMmunotherapy for Prostrate AdenoCarcinoma Treatment) study of Provenge in men with advanced prostate cancer. Following the positive results, the company is once again gearing up to market Provenge once the FDA approval comes through.

Provenge has blockbuster potential; we estimate U.S. sales to be $120 million in 2010 and $200 million in 2011. If the drug is approved, we believe the company will be profitable in 2010. Dendreon will market Provenge in the U.S. on its own and we expect it to announce a partner for the drug in rest of the world soon.

Dendreon will market Provenge in the U.S. on its own. However, on a global basis, we anticipate a partner soon. Once sales start to flow, Dendreon can focus back on the development of its pipeline candidates once more.

Following the positive results announced in late April, Dendreon’s shares have been on the upswing and is trading above the $20 mark. The stock closed on July 2 at $23.48. We believe that the current share price represents an attractive entry point for long-term investors.

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